Are local Employers of Record (LER) a risky solution for expanding businesses?
With the rise of remote work, many companies have turned to Local Employers of Record (LERs) to expand their business operations into foreign markets. LERs are outsourcing companies founded in a particular jurisdiction for the sole purpose of acting as the “employer” on paper.
However, this article by First Post highlights the potential drawbacks and risks of using an LER, including a false sense of security on liability and creating additional costs and administrative burdens. The use of an LER can also create issues in maintaining a consistent company culture and enforcing company policies, and may lead to significant legal and financial risks for associated companies.
Despite these potential drawbacks, there are some circumstances where using an LER may make sense, such as establishing a presence in a foreign market quickly or when there are complex legal and regulatory requirements. However, companies should conduct thorough research on potential LER partners to ensure they are working with a reputable and reliable LER to minimize the potential risks.
PEO software market- Expecting explosive growth?
A2Z Market Research has released a report that provides insights into the PEO Software market. The report covers the process of collecting, analyzing, and interpreting data about the market, which helps companies to understand customer needs and preferences, and assess competition in the IT & Telecommunication industry. It highlights key market players and their business strategies, financial status, and upcoming products, and introduces the market by providing an overview of definitions, applications, and regions.
This includes segmentation by type and product application, and conducts market research using various methods such as surveys, focus groups, interviews, and observations. The regional coverage of the PEO Software market is mentioned with a focus on regions such as North America, South America, the Asia Pacific region, the Middle East and Africa, and Europe. PEO Software Market research helps companies identify potential opportunities and threats in the industry, assess demand for a product or service, and determine the optimal strategy while the market for the software is expected to grow exponentially till 2030.
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Is Paychex underperforming the S&P 500?
Shares of Paychex (PAYX) have lost around 5% since the company’s last earnings report. However, Paychex reported better-than-expected third-quarter fiscal 2023 results. Adjusted earnings of $1.29 per share beat the Zacks Consensus Estimate by 4%, increasing 12.2% YoY, while total revenues of $1.4 billion beat the Zacks Consensus Estimate by 1.5% and increased 8.2% YoY. The company also revised its adjusted earnings per share view for fiscal 2023 from 12-14% growth compared to the prior year, compared to the prior expectation of 11-12% growth. Management Solutions’ revenues are expected to grow 7-8% (prior view: 5-7%), PEO and Insurance Solutions’ revenues are expected to grow 5-7%, and interest on funds held for clients is now anticipated to be in the range of $100-$105 million (prior view: $100 million to $110 million).
